69C-2.024. Criteria and Guidelines to be Used by the Chief Financial Officer in Administering and Protecting the Integrity of the Public Deposits Program

(1) Entry, withdrawal, and continued participation in the program will be based on the overall financial condition of each Qualified Public Depository and each applicant.

(2) The financial condition of each Qualified Public Depository and each applicant will be determined by an analysis of:

(a) Ratios derived from the institution’s quarterly regulatory reports.

(b) The trends experienced by each institution.

(c) An average financial condition ranking from two nationally recognized financial rating services, published quarterly.

(d) Other pertinent information relating to the overall financial condition of the institution.

(3) Based on guidelines recommended by both the Banks and Savings Associations Advisory Committees, the following numerical parameters for entry, withdrawal, collateral pledging levels, and requirements will apply for all participants and applicants. Using a scale of 0 to 100, institutions with a quarterly average financial condition ranking of:

(a) 20 or more may join the Public Deposits Program.

(b) 0-15 must withdraw from the program. However, an institution may choose to meet the following conditions as an alternative to withdrawing:

1. Establish a maximum amount of public deposits the institution may hold, which is mutually agreed upon by and between the Chief Financial Officer and the institution.

2. Deposit into an account in the Chief Financial Officer name eligible collateral equal to two hundred percent (200%) of the amount of public deposits agreed to pursuant to subparagraph 1., above.

3. Submit each month, or whenever requested by the Chief Financial Officer, a certified report listing all public deposits held for the credit of all public depositors.

(c) 0-20 must deposit collateral into a custodial account established in the Chief Financial Officer name. The Qualified Public Depository shall not be allowed to utilize the services of any affiliated institution for these purposes.

(d) 0-29 must pledge collateral at a one hundred twenty-five percent (125%) level, unless paragraph (3)(b) of this rule applies.

(e) 30-69 may pledge collateral at a fifty percent (50%) level.

(f) 70 and above may pledge collateral at a twenty-five percent (25%) level, calculated on an average of the most recent fourquarters rankings.

(g) Institutions less than three years old must pledge collateral at a one hundred twenty-five percent (125%) level as required in Section 280.04, F.S., unless paragraph (3)(b) of this rule applies.

(4) On a quarterly basis, the Chief Financial Officer will review the average ranking of each Qualified Public Depository, any changes to its collateral pledging level and requirements, and any other action required or relevant to the institution’s continued participation in the Public Deposits Program, and notify each depository of his findings.

(5) The Advisory Committees will review, monitor, and make recommendations for modifications to these guidelines or numerical parameters as necessary to meet the changing needs of the program and participants. The Chief Financial Officer will notify each Qualified Public Depository of all changes in these guidelines or the numerical parameters as they occur.

(6) The Chief Financial Officer may at any time require a one hundred twenty-five percent (125%) collateral pledging level for any Qualified Public Depository which exhibits one or more of the following conditions:

(a) Decreases in its capital accounts;

(b) Evidence of factors, including but not limited to, unsound management practices and/or unstable market conditions which may affect the solvency of the depository;

(c) Violation of the provisions of the “Florida Security for Public Deposits Act” or these rules.

Rulemaking Authority 280.04(1), 280.19 FS. Law Implemented 280.04, 280.05(6), 280.16, 280.17 FS. History–New 1-23-91, Amended 7-12-92, Formerly 4C-2.024.